New Gym Facility Substituted for Reduced Lounge Space

Landlord applied for permission to modify required building services. The DRA ruled for landlord in part and gave landlord permission to reduce by 20 percent the lounge room area to enlarge the existing exercise room. The DRA gave this permission on the condition that rent-regulated tenants continue to use both the existing and new exercise rooms without charge. Landlord appealed, claiming that it should be allowed to charge all tenants for the new exercise room. The DHCR ruled against landlord. The use of the new gym by rent-regulated tenants, at no cost, was a proper substitute for the 20 percent reduction of lounge space requested by landlord.

Churchill Owners Corp.: DHCR Adm. Rev. Dckt. No. MH410005RO (1/24/03) [3-pg. doc.]